When it comes to long leasehold premises in Walworth, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Walworth with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under eighty years left, under the relevant statute the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Walworth can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Walworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Muhammad, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Walworth. Having purchased his home two decades ago, the length of the lease was of little concern. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Muhammad extended the lease just in the nick of time last July. Muhammad and the freeholder via the managing agents in the end agreed on sum of £5,000 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £1,050.
In 2013 we were phoned by Mr and Mrs. M Rose who, having completed a newly refurbished apartment in Walworth in July 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar properties in Walworth with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 invoiced yearly. The lease lapsed in 2101. Taking into account 75 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement decision for a Walworth flat is 28 Valmar Road in June 2013. this was a case with an absentee freeholder. As a result the leaseholders applied to the Lambeth County Court for an order dispensing with the giving of a notice of claim. On 25 April 2013 District Judge Zimmels made a vesting order and directed that the matter should be transferred to this tribunal to determine the premium. The tribunal concluded on a figure of £1,125 This case affected 3 flats. The number of years remaining on the existing lease(s) was 968 years.